Welcomes Trump’s Proposal for New Semiconductor Rules

Jensen Huang, NVIDIA’s chief executive officer (CEO), has labeled the U.S. government’s policy of restricting semiconductor exports to China as “a failure.” However, he welcomed recent statements by U.S. President Donald Trump about scrapping this policy and creating new rules, emphasizing that it is time for the U.S. to regain its leadership in the AI semiconductor field, which is expected to grow to $50 billion (about 70 trillion won) this year. He stressed that the U.S. public and private sectors must sprint at full speed to regain overwhelming market share in China, where 50% of the world’s AI researchers are concentrated.

On May 21, Huang held a media briefing at a hotel in Taipei, Taiwan, where Asia’s largest Information Technology (IT) exhibition Computex 2025 is being held, explaining his company’s AI technology and future operational strategies.

He clearly defined the U.S. government’s measures to restrict semiconductor exports to China as a misjudgment. “All in all, the export control was a failure,” Huang said, adding, “The fundamental assumptions that led to the AI diffusion rule in the beginning, in the first place, have been proven to be fundamentally flawed.”

Huang pointed out, “NVIDIA has suffered billions of dollars in losses due to the ban on shipping H20 products to China,” adding, “This is larger than the sales of many semiconductor companies.”

Last month, President Trump restricted the export of even the H20 chip to China, which NVIDIA had developed with reduced performance to circumvent semiconductor export regulations to China. Since the time of former President Joe Biden, the U.S. government has begun regulating the export of NVIDIA’s cutting-edge AI semiconductors such as H100 to China, and in January of this year, at the end of President Biden’s term, “AI semiconductor export regulations” are being implemented.

However, he welcomed President Trump’s recent statement about scrapping AI semiconductor export regulations and creating new rules. Huang said more than half of the world’s AI researchers are based in China, and the export restrictions forced them to turn to local Chinese technology.

Huang praised Trump’s approach to AI and said the president demonstrated he understands U.S. companies are not the only providers of such technology. “President Trump realizes it’s exactly the wrong goal,” he said in reference to the prior rules.

He evaluated that this transition has occurred at the right timing. His view is that global investment in AI infrastructure is still in its early stages, and inferential AI, which is becoming mainstream, will exponentially increase computing infrastructure demand for each country and company.

Huang emphasized, “While AI models so far have been in a ‘one-shot’ form where one question gets one answer, now inferential models that read, think, and search on their own, rather than providing pre-learned answers, are spreading,” adding, “Such inferential AI will increase the need for computer operations by up to 1,000 times.”

In his keynote speech at Computex 2025 on the 19th, CEO Huang also said that AI infrastructure is an infrastructure that will succeed electricity and the internet, and that infrastructure investment by countries and companies is only at an extremely early stage. He also argued that in this phase, the U.S. must run at full speed to overwhelm China. He stated, “If the U.S. wants to maintain its lead, and if the U.S. wants the world to build based on U.S. technology, we need to maximize the spread of AI and maximize speed.”

Source: Businesskorea